Winston Churchill wrote:
Files in mpeg2 format will be too large and at too high a bitrate to play on the tv in standard quality. If you look at the average DVD it likely has 6-7 GB of data on it and runs at a bitrate of 6-7 Mbps, both exceed the specs for the tv. Allowing mpeg2 files to be played on the tv would limit content to low quality material.
On the face of it I see your point but it's not necessarily correct when you think about it.
The bitrate maximum values apply specificaly to MP4/h264 files. Other formats may have lower/higher bitrate maximum values.
h264 is definitely more complex to encode and I suspect to decode than MPEG-2.
The AppleTV modders can play back MPEG-2 easily using adidtional codecs, so we know it's capable of doing so.
There are several factors at play, which probably mainly realtes to the decoding prowess of AppleTV - streaming and the internal hard drive should easily be able to deliver bitrates well in excess of 5Mbps, and the processing power I suspect is rate limiting.
In respect of Divx the situation is somewhat different, you couldn't really expect  to support it, apart from it being a format that belongs to another organisation and one that has been inconsistent in it's specifications over time it is largely a platform that at least ignores if not encourages piracy.
The piracy aspects are why I have reservations, but increasingly DVD players and HDD recorders will allow playback of DivX content - -the reason being that the demand is out there to make it worth including. I often see people saying they will not buy a particular DVD player/recorder etc as it doesn't support Divx. These devices are more mainstream than AppleTV, so I think the average consumer would apply the same criteria when deciding if AppleTV was right for them or not.
I think I used Divx once many years ago on PC when it was in an early stage of evolution but it's not something I woud choose to use.
AC